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How Much is My Investment Property Worth?

How Much is My Investment Property Worth? Read the full blog post here: https://robrosarealestate.blogspot.com/ Let's talk about whether or not this is a good investment or what price should we sell it at. The income approach will help us determine the property's value. The income approach is used for valuation of income-producing properties such as apartment buildings, office buildings, retail stores and shopping centers and is based on anticipation. These are the 5 steps that are taken into consideration - G - I - V - E - N
GROSS Income - estimate it depending upon market, also include sources such as vending machines, parking fees, and laundry machines. Vacancy - deduct for vacancy and rent loss. Expenses - items such as heat, hot water, utilities, real estate taxes, insurance, legal & accounting fees, advertising and property management are included. Mortgage payments (principal and interest) are debt service and are not considered operating expenses. Net Operating Income - deduct the annual operating expenses from the effective gross income to arrive at the annual net operating income (NOI). Estimate the capitalization rate (cap rate) or get it from your local experienced real estate agent. In Hartford County, the cap rate is 7.19% for apartment buildings and mixed use right now. This is determined by comparing the relationship of net operating income with the sales prices of similar properties that have sold in the current market. For example, ca comparable property that is producing $5,000 per month of NOI, $60,000 annualized NOI and the cap rate is 7.19% would have a value of $834,492.35. Here are the 3 equations used: Value x Rate = Income Income / Value = Rate Income / Rate = Value This will help to determine the value and or what the expected income should be. It is just a gauge that is used. For more real estate ideas, subscribe to my YouTube Channel! https://www.youtube.com/user/MrTriplestar Where I hang out online... https://www.facebook.com/robrosarealtor http://ctrealestateselling.com http://ctrealestateschool.info https://www.linkedin.com/in/robrosa https://www.instagram.com/ctlivingwithrobrosa http://robertrosa.bhhsneproperties.com Rob Rosa is a licensed real estate broker in CT Berkshire Hathaway HomeServices New England Properties 1160 Silas Deane Highway, Wethersfield, CT 06109
Location: Wethersfield, CT, USA

About Me

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Rob Rosa, Berkshire Hathaway NE Prop.
My focus is helping people increase their lifestyle. I love my huge family and work tiredlessly to help them and my clients everyday. I have been working in real estate since 2000. I have been awarded numerous Top Agent awards and am currently ranked in the Top 1% of the Berkshire Hathaway HomeServices global network, over 52,000 agents. I am also the Founder and Instructor of Rubicon Crossings School of Real Estate: offering state of CT approved pre-licensing class, get info at http://ctrealestateschool.info. My extensive experience is: top producing sales and marketing executive focused on quality service and relationship building. Have over 30 year’s experience helping people in busines, including with two Fortune 100 companies; UPS, UHG and Berkshire Hathaway HomeServices: project management, mortgage lending, residential, commercial and franchise sales, property management and real estate education leader. I live in East Hartford and work all over central CT. My office address is 196 Berlin Turnpike #5, Berlin, CT 06037 and I have been involved in many events in Rocky Hill and Glastonbury. I look forward to helping you every way I can.

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